• 54% of middle-income consumers are considering a vehicle purchase in the year ahead, up from 43% a year ago.
  
• More than seven in 10 (72%) are willing to sacrifice other budgetary items to maintain vehicle access, the highest reading in two years.
• 81% of prospective car buyers would consider a used vehicle, with interest in used cars growing in the past year.
• Middle-income Americans remain resilient, with nearly eight in 10 (79%) believing they are on the right financial track, a new survey high.

Santander Holdings USA, Inc. (“Santander US”) today announced new findings from a survey of middle-income Americans showing rising demand in the auto market, as more middle-income Americans shop for their next vehicle and prioritize vehicle access. More than half of consumers (54%) are considering buying a vehicle in the year ahead—up from 43% a year ago—while 50% delayed a purchase in the past year, matching a survey low.

This marks the second consecutive quarter in which purchase considerations outnumber delays, signaling stronger buying momentum, as pent-up demand gives way to sales activity. Many prospective buyers are already taking concrete steps—such as researching options (66%) and visiting dealerships (49%)—with more middle-income Americans taking these actions than in prior quarters. Additionally, an increasing share (72%) are willing to sacrifice other budgetary items to maintain vehicle access, a figure that has continued to rise since the end of last year.

As more middle-income consumers shop for their next vehicle, many are recognizing the advantages of buying used. Nearly nine in 10 prospective buyers (89%) agree used vehicles provide good value and offer modern features and technology, while 84% believe purchasing used is often the smarter choice. Consideration of used cars is also rising. More than eight in 10 prospective car buyers (81%) would consider a used vehicle, with most of them (90%) indicating that their interest has grown over the past year.

Openness to used cars reflects a broader focus on affordability, which was the most influencing factor for those who purchased vehicles this year. While most 2025 buyers (79%) made some sacrifices—such as giving up certain features—to stay on budget, nearly all (88%) still managed to purchase a vehicle in their price range, and nine in 10 are satisfied with their choice.

“Affordability continues to be a driving factor for today’s buyers, and it’s encouraging to see that so many of them are finding vehicles that fit within their budget,” Jotanovic said. “The increased openness to used cars reflects both practicality and resilience—buyers know they can get value, modern features, and reliability, while maintaining financial flexibility. At Santander, we see this as a positive sign of consumers adapting to today’s market while staying focused on what matters most: access to safe, dependable transportation.”

The Q3 2025 Santander US study, which builds upon ten quarters of research, looks at how middle-income Americans are navigating today’s economic conditions. It examines how practicality—including affordability, flexibility, and convenience—is influencing how consumers spend, save, and adapt their financial habits. The survey was conducted in September 2025, prior to the U.S. government shutdown.

Financial Confidence Rises in Q3

Middle-income Americans’ optimism about their personal finances remains strong. In fact, 79% feel they are on the right financial track, a new survey high, with most staying current on their bills (75%) and feeling secure in their jobs (81%)—the two factors most associated with financial prosperity. While more than three-quarters (78%) say inflation is still a major concern, 52% report handling higher prices better than a year ago, up from 43% at the same time last year.

Renting Increasingly Seen as the More Affordable, Practical Choice

While home prices remain elevated, middle-income renters increasingly view their housing situation as the more affordable option. Two-thirds believe renting costs less than having a mortgage, and 58% say they would be comfortable renting indefinitely, both up five percentage points from last quarter. More than eight in 10 (81%) say renting allows them more freedom in where they live and work, and 70% agree renting offers more amenities and updated living spaces. However, six in 10 renters report there are not enough rental options in their area, and 74% believe building more multifamily homes, such as apartment buildings, will help maintain affordability. That sense of practicality and flexibility is especially evident among younger generations, who are more likely to see renting as a better fit for their lifestyle. More than seven in 10 Gen Zers (77%) and Millennials (72%) say they would rather be able to travel, relocate, or pursue new experiences than be tied to a mortgage.

Consumers Still Have Room to Earn More Interest on Their Savings

Middle-income consumers continue to make practical financial choices, but they still have a chance to earn more interest on their deposits. Nearly half (46%) have shifted money into higher-yielding accounts in recent years—up from 34% two years ago—but that progress has plateaued since the start of 2025. Half are still not earning a competitive rate of 3.00% on their savings, highlighting an opportunity to benefit from today’s higher interest rate environment.

This research on financial prosperity, conducted by Morning Consult on behalf of Santander US, surveyed 2,216 Americans who are bank and/or financial services customers, ages 18-76. Survey participants are employed or looking for work, own/use at least one financial product and are the primary or shared decision-maker on household finances with household income in the “middle-income” range of ~$53,000 to $161,000. This Q3 study was conducted September 4 – 7, 2025. The interviews were conducted online, and the margin of error is +/- 2 percentage points for the total audience at a 95% confidence level. Percentages may not total 100 due to rounding. The data was weighted to target population proportions for a representative sample based on age, gender, ethnicity, region and education.

The full report and more information about the Santander US survey is available HERE.